Churn Rate Calculator

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Calculate customer and revenue churn to understand retention health.

Enter Your Numbers

Customers at Start of Period

Total customers at the beginning of the month/quarter

Customers Lost During Period

Customers who cancelled or did not renew

MRR at Start of Period ($)

Monthly Recurring Revenue at the start

MRR Lost During Period ($)

MRR from churned customers

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Enter your numbers and click Calculate to see your results.

Frequently Asked Questions

Everything you need to know about churn rate calculator.

What is ARR and how is it calculated?

ARR (Annual Recurring Revenue) is the annualised value of your recurring subscription revenue. The simplest calculation is ARR = MRR × 12. For businesses with annual contracts, ARR is the sum of all active annual contract values. ARR excludes one-time fees, professional services, and variable usage revenue unless those components are contractually committed.

What ARR milestones matter most for SaaS?

Key ARR milestones that signal business maturity: $1M ARR — product-market fit confirmed; $10M ARR — scalable go-to-market motion established; $50M ARR — enterprise-grade product and processes required; $100M ARR — IPO-ready scale. Each milestone typically requires different go-to-market strategies, team structures, and marketing investments.

What is the difference between ARR and ACV?

ARR is the total annualised recurring revenue across all customers. ACV (Annual Contract Value) is the average annual value of an individual customer contract. ARR = Number of Customers × ACV. Tracking ACV trends helps you understand whether you are moving upmarket (increasing ACV) or downmarket (decreasing ACV) over time.

How do investors use ARR to value SaaS companies?

SaaS companies are typically valued as a multiple of ARR. Growth-stage SaaS companies (growing 50%+ annually) often command 8–15x ARR multiples. Companies growing 20–50% typically see 4–8x ARR multiples. The multiple is influenced by growth rate, net revenue retention, gross margins, and market size. Understanding your ARR growth rate is therefore directly tied to your company’s valuation.

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